The crypto market is poised for continued growth in 2025, but the upcoming inauguration of
Trump will likely introduce significant shifts. This analysis from Bitget Research explores the
potential market movements and expected developments for Bitcoin.
Donald Trump’s inauguration on January 20, 2025, is likely to have a profound impact on the
financial markets, driven by expectations of policy announcements related to taxes, trade,
deregulation, and immigration. These developments are likely to influence key events such as
the Federal Open Market Committee (FOMC) meeting, which may adjust interest rates in
response to inflationary pressures stemming from fiscal policies. Additionally, Q4 earnings
reports are expected to provide early insights into the economic effects of these anticipated
policy shifts. Macroeconomic factors, including potential inflation, evolving trade dynamics,
regulatory reforms, and adjustments in Federal Reserve monetary policy, are all set to
contribute to heightened market volatility.
Bitcoin is experiencing a bullish trend, with critical support at $88,000 and resistance at
$108,000. Anticipation surrounding Trump's inauguration has fueled expectations of pro-crypto
policies, contributing to the recent price rally. Additionally, macroeconomic conditions, such as
inflation concerns and fiscal policies, enhance Bitcoin’s appeal as a hedge against currency
devaluation, further driving investor interest.
However, the market faces the risk of a "sell-the-news" scenario post-inauguration if positive
sentiment has already been factored into current prices. Analysts forecast that Bitcoin could
reach $100,000 to $150,000 in the short term, while long-term projections remain uncertain,
contingent on the implementation and impact of forthcoming policies. Investors should prepare
for potential market volatility tied to this political event, anticipating a mix of short-term reactions
and long-term economic realignments.
